Major United States benchmark averages closed mixed on Wednesday (Thursday AEST), capping off a turbulent trading session and a volatile month, as fresh data revealed the U.S. economy contracted in the first quarter, intensifying recession concerns among investors.
The Dow Jones Industrial Average rose by 141.7 points, or 0.4%, to close at 40,669.4. The S&P 500 gained 8.3 points, or 0.2%, to end at 5,569.1. In contrast, the Nasdaq Composite slipped 15 points, or 0.1%, finishing at 17,446.3.
Despite the day’s uneven finish, both the S&P 500 and Dow secured their seventh consecutive daily gain.
However, the session was marked by sharp intraday swings, with the S&P 500 down nearly 2.3% at its lowest point and the Dow off by more than 780 points.
For April, the Dow declined by 3.2%, the S&P 500 lost around 0.8%, while the Nasdaq gained 0.9%.
Market sentiment soured after the U.S. Commerce Department reported a 0.3% contraction in gross domestic product (GDP) for the first quarter, a stark reversal from the 2.4% expansion recorded in the fourth quarter and below the 0.3% growth expected.
Analysts suggested that the data may have been distorted by a 41% surge in imports, as companies scrambled to bring in goods ahead of potential tariffs from former President Donald Trump.
The report also showed a marked slowdown in consumer spending and a drop in government expenditures, the latter attributed in part to Elon Musk's cost-cutting measures involving DOGE-related programmes.
Following the GDP release, Trump posted on Truth Social, attributing the economic weakness to a “Biden ‘Overhang’” and urging followers to "BE PATIENT!!!", assuring that his policies "will take a while" to show results.
In bond markets, the 10-year Treasury note yield fell 0.1% to 4.168%, while the 2-year yield dropped 1.2% to 3.613%.
